A question about the $700,000,000,000 "bailout"

[KansDem]

If this bailout is to stimulate the economy by getting credit and loans to business and individuals, then why not just loan the money directly to the American consumers? I mean, why go through a "middle man?" Just provide loans for school, cars, business operations, etc, at something like 3% interest.

Am I missing something here?

[Vickers]

1. You're missing 3 zeroes.

$700,000,000,000

:P

[KansDem]

3. oops! Thanks!

Guess it's a good thing I'm not in charge of all this money! :hi:

[RedCappedBandit]

2. Yeah, you forgot we're controlled by fascist overlords. nt

[htuttle]

4. The purpose of the bailout has been to cover a lot of bad bets made by upper class twits

The whole 'stimulate the economy' thing is mostly just marketing.

[On the Road]

5. The $700 Billion Was NOT Proposed to Stimulate the Economy

It was to prevent banks and other financial companies from failing by purchasing assets like mortgages or equities from them or by making loans directly to the company.

This was on the theory that there would if the financial sector collapses, the economy collapses, and stimulation is moot.

The law was written very broadly, and some of changes that Paulsen has made sound more like general economic stimulative efforts. This is probably mission creep. It may or may not be a good idea, but it would be departing from the original purpose.